TL;DR Breakdown
- Polkadot price analysis is bearish today.
- DOT/USD has found resistance at $22.
- First signs of reversal were seen yesterday.
Polkadot price analysis is bearish today as we expect the market to reverse from the $22 resistance and look to set another higher low next week. Therefore, the decline should begin today as we have seen selling pressure returning.
The overall market has continued to trade in the green over the last 24 hours despite signs of reversal. The market leaders, Bitcoin and Ethereum, have gained 2.87 and 2.08 percent, while Polkadot (DOT) has posted over a 7 percent gain.
Polkadot price movement in the last 24 hours: Polkadot rejects further upside, starts to test downside
DOT/USD traded in a range of $20.95 – $21.92, indicating substantial volatility over the last 24 hours. Trading volume has declined by 35.4 percent, totaling $955 million, while the total market cap trades at $21.16 billion, ranking the coin in 10th place overall.
DOT/USD 4-hour chart: DOT looks to retrace
On the 4-hour chart, we can see strong signs of incoming retracement for the Polkadot price action after the $22 mark has offered strong resistance.
Polkadot price has seen a slow recovery from the previous major downswing over the last weeks. Series of higher lows have been set along the way, indicating bullish market structure.
After the $20 previous resistance was briefly broken at the beginning of February, the following retracement set a strong higher low above $18. From there, DOT/USD saw a strong rally to $22, indicating increasing bullish momentum.
Since then, the Polkadot price action has rejected further upside and has started to test the downside again. Overnight, the upside was rejected again, likely leading DOT/USD lower over the next 24 hours and a new higher low set early next week.
Polkadot price analysis: ConclusionÂ
Polkadot price analysis is bearish today as the market has found strong resistance at $22 yesterday and has reacted lower since. Therefore, we expect DOT/USD to retrace over the next days and look to set another higher low.
While waiting for Polkadot to move further, see our articles on Coinbase vs Coinbase Pro, Hardware vs Software wallet comparison, best Crypto trading platforms in the USA.
